Korn Ferry (KFY)
Debt-to-equity ratio
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 396,946 | 396,194 | 395,477 | 394,794 | 394,144 |
| Total stockholders’ equity | US$ in thousands | 1,733,060 | 1,648,070 | 1,544,350 | 1,366,390 | 1,221,380 |
| Debt-to-equity ratio | 0.23 | 0.24 | 0.26 | 0.29 | 0.32 |
April 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $396,946K ÷ $1,733,060K
= 0.23
The debt-to-equity ratio of Korn Ferry has been decreasing over the past five years, indicating a positive trend towards a more conservative capital structure. In April 2020, the ratio stood at 0.32, and it has steadily declined to 0.23 by April 2024. This downward trend suggests that the company has been reducing its reliance on debt financing in favor of equity, which can be seen as a favorable sign of financial health and stability. A lower debt-to-equity ratio typically indicates lower financial risk and better ability to weather economic downturns. Overall, Korn Ferry's decreasing debt-to-equity ratio over the past five years reflects a prudent financial management strategy aimed at strengthening its financial position.
Peer comparison
Apr 30, 2024